Vertiv shares jump 10.9% premarket after Q3 sales rise 61%

Vertiv Holdings Co (VRT) said in a regulatory filing on Oct. 28 that third-quarter net sales rose 61% to $4,312.8 million, and it raised its full-year 2026 net sales forecast by $650 million. Shares rose 10.9% in premarket trading as of 6:05 a.m. ET, from a regular-session close of $208.56.

The company sells power, cooling and IT infrastructure solutions and services for data centers, communication networks and commercial and industrial facilities. It is headquartered in Westerville, Ohio, and does business in more than 130 countries.

Here's how the company did:

• Net sales: $4,312.8 million vs. $2,675.8 million a year earlier
• Adjusted diluted EPS: $2.21 vs. $1.24 a year earlier
• Diluted EPS: $1.95 vs. $1.02 a year earlier
• Adjusted operating profit: $1,086.9 million vs. $595.6 million a year earlier
• Operating cash flow: $794.0 million vs. $482.7 million a year earlier

Adjusted operating margin was 25.2%, up 290 basis points from a year earlier. The company said operating leverage on higher sales and manufacturing productivity drove the gain, partly offset by mix and continued growth investments.

Organic sales growth was 55%, and acquisitions contributed about 6% of the increase.

2026 guidance

Vertiv raised its full-year 2026 net sales forecast to $14,450 million to $14,850 million, from the $13,800 million to $14,200 million range it gave on July 29.

It raised its full-year adjusted diluted EPS forecast to $7.10 to $7.20, from the $6.65 to $6.75 range it gave on July 29. Adjusted free cash flow is now expected at $2,600 million to $2,800 million, from $2,400 million to $2,600 million.

For the fourth quarter, the company expects net sales of $4,313 million to $4,513 million and adjusted diluted EPS of $2.22 to $2.28.

“We are in the middle of the largest infrastructure buildout and it's accelerating,” Chief Executive Officer Giordano Albertazzi said. “The demands on data center infrastructure are evolving faster than ever, and Vertiv's role in that buildout keeps expanding.”

Segment results

Americas net sales rose 75% to $2,988.8 million, with organic growth of 66%. Asia Pacific rose 50% to $779.3 million, with organic growth of 48%. EMEA rose 23% to $544.7 million, with organic growth of 19%.

Cash flow and liquidity

Adjusted free cash flow was $652 million, up 50% from a year earlier. Higher adjusted operating profit drove cash generation, partly offset by increased working capital and higher capital expenditures to support growth, the company said.

Liquidity rose to $6.2 billion, and the company said it maintained a net cash position. Cash and cash equivalents were $3,512.9 million on Sept. 30, up from $1,728.4 million on Dec. 31.

Restructuring costs were $0.2 million in the quarter, down from $30.7 million a year earlier. The company said it will post a slide presentation on its investor relations website before its earnings call on Oct. 28 at 11 a.m. Eastern Time.